Actually, some of that horizontal trading on the COMP chart is a common pattern before a rebound day. I'm pretty convinced Monday will be interesting and lucrative.
What's worrisome is the timing, so close to FOMC. A reversal day followed by a reversal day is a possibility we shouldn't overlook.
Heard an analyst this weekend calling for CSCO at 10. That's hard to believe. But bringing its PE to 30, which has happened to many others, would bring it down to 12.5ish.
I think RIMM may bounce around 22-23, but to be frank, looking at a PE of what, 1003? says here's one tech that has a whole lot of correction left. Within a few weeks, I'd bet on 12 or lower for it.
But leaders often do bounce first on rebound days, just before the indexes bounce. A key question becomes: which leaders will emerge as the new ones? JNPR should outdo CSCO, but some FO may outdo JNPR. This is why I think extra effort on DD will serve well. |
